Facing a budget deficit, will the government raise taxes? Gabriel answers adamantly

The prime minister, Gabriel Attal, is convinced that the best way to succeed in France’s budgetary recovery will be through the success of the full employment project that is close to his heart, and not by increasing revenue through tax increases.

The Prime Minister was clear, on Friday March 8, France 5: “What will be the effect on growth if we have a reflex that often exists in our country to raise taxes. Taxes are the surest way to curb growth”He announced on the sets of the show You c. Gabriel et al.’s strategy to achieve France’s fiscal recovery therefore lies elsewhere than raising taxes.

For that, boosting growth certainly involves improving balance sheet assets to reduce the deficit, but raising taxes is not the best option to achieve this. Quite the opposite.

Raising taxes does not necessarily generate more revenue

As evidence, he cites the positive effects that lower tax reform can bring, for example the reduction of corporate tax, from 33% to 25% in 2017. “We collect more corporate tax at the rate of 25% than we collect at the rate of 33%. When you lower taxes when they are too high, you allow economic activity to flourish. By lowering certain taxes, you allow economic activity to develop and you have more activity », he explained, noting a significantly higher level of taxation in France compared to other countries in the Eurozone.

But where will Gabriel Atal go to get the additional savings of 20 billion announced in the 2025 budget to increase state revenue? Certainly not by raising taxes!

“In recent months, we have noticed that there is an economic slowdown around the world, especially in Europe, which is affecting our neighbors more than us but which is also affecting us. We have revised our growth forecast downwards, which is much lower than our hard-hit Germans.”It points out.

Full employment to optimize social and tax revenue

To reduce the deficit, Gabriel Atal, 64, is paying most attention to the prospects of the government’s flagship project of bringing full employment. “If we had the same employment rate as our German neighbors, the same proportion of people in the job market, we would have no problem balancing our budget. The more French people you have working, the more social and tax revenue you have. “It projects.

“The aim of the social model should be to support the French when they are having a hard time, but also to encourage them to return to activity and work”, Prime Minister decides.

From this perspective, it encourages all who are able to work. It is in this vein that he does not rule out reducing the duration of unemployment insurance benefits, as he urges to encourage the employment of seniors.